You can help by adding to it. April Marxists generally argue that the Great Depression was the result of the inherent instability of the capitalist model.
Commonsfrom whom he learned to use economics to address pressing social problems. Upon completion of the coursework for the PhD in Hansen married Mabel Lewis: Academic career[ edit ] He taught at Brown University while writing his doctoral dissertation, "Cycles of Prosperity and Depression".
Upon completion of the dissertation in published inhe moved back west to the University of Minnesota inwhere he rose quickly through the ranks of a full teacher in Subsequently, his Business Cycle Theory and his introductory text Principles of Economicswith Frederic Garver brought him to the attention of the wider economics profession.
His Economic Stabilization in an Unbalanced Worldwritten with the help of a Guggenheim grant that funded travel in Europe duringestablished Hansen in the broader circle of public affairs.
He was elected as a Fellow of the American Statistical Association in Littauer Chair of political Economy at Harvard University. His first book at Harvard posed the question Full Recovery or Stagnation? Hansen was appointment as special economic adviser to Marriner Eccles at the Federal Reserve Board in and he was in charge until He died in Alexandria, Virginia on June 6 of at the age of 87 years.
It is used in mainstream economics literature and textbooks to illustrate how monetary and fiscal policy can influence GDP.
Hansen presented evidence on several occasions before the U.
Congress to oppose the use of unemployment as the main means of fighting inflation. He advocated instead that inflation could be controlled by changes in interest- and tax-rates as well as controls on prices and wages. Hansen used that analysis to argue for Keynesian deficit spending. Leeson shows that while Hansen and Sumner Slichter continued to be regarded as leading exponents of Keynesian economics, their gradual abandonment of a commitment to price stability contributed to the development of a Keynesianism that conflicted with positions of Keynes himself.
Stagnation[ edit ] In the late s, Hansen argued that "secular stagnation" had set in so the American economy would never grow rapidly again because all the growth ingredients had played out, including technological innovation and population growth.
The only solution, he argued, was constant, large-scale deficit spending by the federal government. The thesis was highly controversial, as critics, such as George Terborgh, attacked Hansen as a "pessimist" and a "defeatist.
In his book Business Cycles and National Income, he defines the cycle as a fluctuation in: The cycle is divided in two phases: For Hansen, there exist stable and unstable economic cycles.
The instability is caused by displacement due to external shocks. Hansen claims that the business-cycle analysis must take into consideration technical progress, the money market, and expectations.
What Hansen had in mind was not just counter-cyclical public spending to stabilize employment but rather major projects such as rural electrification, slum clearanceand natural resource development conservation, all with a view of opening up new investment opportunities for the private sector and so, restoring the economic dynamism needed to the system as a whole.
He advocated against using unemployment to control inflation. He argued that inflation could be managed by timely changes in tax rates and the money supply, and by effective wage and price controls. He also advocated fiscal and other stimuli to ward off the stagnation that he thought was endemic to mature, industrialized economies.
Hansen was not without his critics, however; journalist John T.Alvin Hansen and the origins of the stagnation thesis Up to and including the country had a frontier of settlement, but at present the unsettled area has been so broken into by isolated bodies of settlement that there can.
The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in It was his explanation for the cause of the Great Depression for which he was, deservedly, most well known. Download-Theses Mercredi 10 juin 1.
The re-discovery of secular stagnation. On 8 November , at an IMF conference in honour of Stanley Fisher, Lawrence Summers revived the doctrine of “secular stagnation”, an expression introduced by Alvin Hansen ( Hansen, A.H., Capital goods and the restoration of purchasing power.
Alvin Hansen's wiki: Alvin Harvey Hansen (August 23, – June 6, ), often referred to as "the American Keynes," was a professor of economics at Harvard, a widely read author on current economic issues, and an influential advisor to the government who helped create the.
D. the strong recovery after the Second World War and Alvin Hansen's stagnation thesis. A Suppose the economy is operating at its full .